InsiderBusinessContinuous delays in finalising CCB deal

Continuous delays in finalising CCB deal

While everyone expected the end of the CCB-Hellenic Bank deal thriller yesterday (Thursday), new issues arose leading to a further delay.

Yesterday, the Board of Directors of Hellenic Bank had another meeting that lasted for several hours. The discussions focused on the substance of the agreement for the acquisition of CCB’s ‘healthy’ operations and on the issue of the participation of new shareholders to increase the Bank’s capital in case the existing shareholders do not exercise the right to purchase new shares. According to sources, Demetra Investment, an existing shareholder, will participate in the issue of new capital, Third Point is not interested in investing additional funds and Wargaming is keeping its cards close to chest.

Pimco and Atlas funds, who are both interested in participating in the Board of Directors of Hellenic have responded positively. The amount of capital needed was set at €150 million, despite initial calculations by the Supervisory Authorities that capital needs would range between  €450-500 million.

Meanwhile, unions are asking for an attractive plan for voluntary redundancy for the 900 employees of the CCB to be laid off. Yesterday, at a meeting with the President of the Republic, it was agreed that unions and CCB should start negotiations. Currently, the maximum compensation discussed is 100 thousand euros.

Read also: Government hands over perks to help seal CCB deal

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